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Hafary House Review

Hafary House Review
Premium Showroom Space & Heritage Conservation | District 12

Hafary House

Contemporary retail showroom within a heritage Art Deco conservation building in vibrant Lavender district

SGCPI Research Desk Updated August 2026 161 Lavender Street, Level 2, Singapore 338750 FREEHOLD

Street-level view of Hafary House, a heritage conservation building with modern retail showroom fit-out at 161 Lavender Street, Singapore. Imagery: Google Street View (user-contributed imagery), accessed August 2026.

Project Overview

Building NameHafary House
Address161 Lavender Street, Level 2
DistrictD12 (Balestier / Toa Payoh)
TenureFreehold
Zoning / UseCommercial Retail Showroom
Built Form4-storey heritage shophouse + modern extension
Land Area / GFA≈ 10,000 sq ft (Hafary House Level 2)
Completion Year1930s (original); 2024 (Hafary fit-out)
Nearest MRTLavender (EW11) 2 mins; Bendemeer 4 mins
Key Road AccessJalan Besar, Lavender Street, Bendemeer Road
Transacted PSF Range≈ S$1,200–1,600 PSF (commercial D12)
Sale Price Range≈ S$71.28M (Hafary Holdings, July 2022)
Asking Rent Range≈ S$3,500–5,500 / month (office units)
Occupier BaseHafary Group; tiles, stone, bathroom & flooring showroom

Location & Connectivity

Hafary House occupies the second level of a heritage conservation building at 161 Lavender Street, positioned in the heart of the vibrant Lavender district within District 12. This precinct, centred on the historic Jalan Besar neighbourhood, has undergone careful urban renewal, balancing conservation of its pre-war architecture with contemporary commercial activity. The immediate vicinity is a mixed-use commercial and light industrial zone, home to specialty retailers, service providers, and design studios. The building itself is a prominent heritage landmark, originally erected in the 1930s by prominent philanthropist Lee Kong Chian, featuring distinctive Art Deco facades with pastel hues and a triple frontage onto Lavender Street, Foch Road, and Tyrwhitt Road.

Public transport connectivity is excellent. Lavender MRT Station (EW11) is a mere two-minute walk, placing occupants on the East-West Line with direct access to Outram Park, Tanjong Pagar, and the CBD. Bendemeer MRT Station is a four-minute walk, also serving the North-East Line network via nearby Farrer Park (NE8). Together, these stations offer rapid commute options to all major business districts. The building is accessible via Jalan Besar, Lavender Street, and Bendemeer Road, with ample bus stop coverage. Parking is available on-site with ten covered lots, essential for client visits and goods handling in a mixed commercial setting.

The immediate neighbourhood comprises City Square Mall offering retail and banking amenities, numerous F&B establishments, and a range of support services. The conservation area designation ensures a curated streetscape, lending Hafary House a distinctive commercial address that appeals to design-conscious occupants and visitors. Proximity to the Kallang business corridor and Sri Srinivasa Perumal Temple enhances the precinct’s cultural and commercial vibrancy, making Hafary House an attractive location for building materials, design, and lifestyle retail.

Location of Hafary House within the Lavender conservation district. Map data: Google Maps, accessed August 2026.

Building & Facilities

The building housing Hafary House is a four-storey heritage shophouse structure, extensively restored and conserved. The original pre-war structure, erected in the 1930s, features hand-crafted Art Deco architectural details, including ornamental Majolica tilework and column capitals. In the 1990s, the building underwent a comprehensive conservation and restoration programme, which included sensitive replacement of missing tiles with period-appropriate replicas and the installation of discrete utilities. To accommodate modern use while respecting heritage constraints, a four-storey modern rear extension was constructed, designed to complement the conserved building in scale and proportion. This dual-building approach allows efficient contemporary commercial operation without compromising the protected front facade.

The building is equipped with passenger and service lifts, essential for a mixed-use development. Hafary House occupies the entirety of Level 2, a premium floor allowing direct shopper traffic and excellent natural light. The fit-out, completed in December 2024, was spearheaded by FARM, a multidisciplinary design studio known for innovative space creation. The showroom spans approximately 10,000 square feet, featuring bespoke display zones, interactive material libraries, and dedicated consultation areas. Mini-showrooms for Hafary Bathroom and Wood Culture (premium flooring subsidiary) are integrated within the space, delivering a cohesive design-focused experience. Air-conditioning, LED lighting, and accessibility features are modern standards. Ten covered parking spaces on-site provide secure client parking.

The building’s heritage status, whilst conferring iconic brand positioning, carries compliance obligations. Occupiers must adhere to conservation guidelines for any alterations, and maintenance standards are stringent. The building is gazetted under the Jalan Besar Secondary Settlement conservation area and was placed on the National Heritage Board’s Heritage Trail in 2012. Regular upkeep of facades, roof, and common areas is mandatory. Prospective commercial users should factor heritage maintenance responsibilities into business planning, though these are typically managed by the ownership entity. The conservation-award-winning restoration completed in the 1990s positions the building as a durable long-term asset.

Showroom Spaces & Floor Configuration

Hafary House showcases four primary experience zones designed to serve distinct customer segments and use cases. The main gallery displays premium surface materials including natural stones, engineered stones, and bespoke tiles, arranged by material category and finish. The consultation zone provides designer tables, lighting specimens, and digital tools for specification work. The Hafary Bathroom mini-showroom features fittings, vanities, and mirror systems in curated bathroom vignettes. The Wood Culture flooring gallery displays engineered wood, vinyl, and laminate options under controlled lighting to showcase authentic grain and colour. Each zone employs intuitive wayfinding and interactive material handling to enhance the retail and B2B experience.

Premium Surfaces Gallery

≈ 4,200 sq ft

Main display area featuring natural stone, engineered stone, mosaics, and decorative tiles curated by finish, colour palette, and application type. Ideal for architects, interior designers, and high-end residential buyers seeking specification-grade materials.

Consultation & Design Zone

≈ 2,100 sq ft

Dedicated space with designer workstations, lighting rigs, and sample libraries for detailed project specification. Equipped for digital presentations and professional meetings with contractors and consultants.

Hafary Bathroom Mini-Showroom

≈ 1,800 sq ft

Thematic bathroom displays showcasing fittings, vanities, mirrors, and accessories in functional vignettes. Serves residential renovation and bathroom design segments with hands-on product exploration.

Wood Culture Flooring Gallery

≈ 1,900 sq ft

Premium flooring division showcasing engineered wood, luxury vinyl planking, and laminate under calibrated lighting. Displays installation details and durability characteristics relevant to residential and light commercial projects.

Total Showroom Area: ≈ 10,000 sq ft (Level 2)
Configuration: Open-plan with thematic zoning; multiple entry / exit paths
Parking: 10 covered lots on-site; street parking via Lavender Street and Foch Road
Accessibility: Lift-served; wheelchair accessible; accessible restrooms on-site
Operating Hours: Monday–Saturday 9am–7:30pm; Sunday & Public Holidays 10am–6pm

Investment Case

Hafary House represents a hybrid opportunity: a heritage asset holding generating operational revenue whilst embodying conservation value and brand cachet. Hafary Holdings’ acquisition in July 2022 at S$71.28 million positioned the asset as a flagship retail and design destination in an underappreciated but regenerating heritage precinct. The December 2024 soft opening of the showroom demonstrates committed capital deployment and revenue strategy. For investors or occupiers, the proposition hinges on design retail demand, D12 commercial fundamentals, and heritage asset appreciation. The building’s dual-structure (restored heritage front + modern extension) mitigates regulatory risk, whilst the Hafary Group’s substantial footprint (multiple showrooms and business units across Singapore) provides operational robustness and credit strength.

What Works

  • Heritage conservation status and award-winning restoration enhance brand positioning and long-term asset stability
  • Excellent MRT connectivity (Lavender EW11 & Bendemeer) with sub-5-minute walk times from multiple stations
  • Freehold tenure eliminates lease expiry risk and provides permanent development optionality
  • Established Hafary Group occupancy provides reliable revenue stream and demonstrated market demand for showroom format
  • Located within thriving design and creative precinct; proximity to City Square Mall and emerging lifestyle venues

What to Weigh Carefully

  • Heritage conservation constraints limit future reconfiguration; any structural or facade changes require URA and NHB approval
  • D12 commercial yields typically lower than central business district; property tax and maintenance obligations substantial
  • Showroom format is tenant-specific; conversion to office, food service, or other uses may trigger compliance friction
  • Building age (94 years original; modern extension ~30 years) entails ongoing capital expenditure for MCST and facade renewal
  • Reliance on single anchor tenant (Hafary Group) concentrates revenue risk; exit or downsizing would require repositioning effort

Who This Suits

Hafary House is ideally suited for interior design studios, architecture practices, and premium building materials distributors seeking a heritage-aligned, MRT-accessible flagship location in a design-forward precinct. The showroom format appeals to brands targeting high-end residential, hospitality, and commercial fit-out segments where designers and architects are principal decision-makers. Occupiers with heritage commitment and brand storytelling potential will find the conservation building’s provenance attractive. Long-term investors with patient capital and heritage appreciation will value the freehold tenure and conservation asset characteristics. The D12 location works well for clients requiring mid-market accessibility without CBD premium costs. However, it does not suit price-sensitive mass retail, food operators, or businesses requiring heavy loading, as the building’s heritage status and mixed-use context impose operational constraints. Prospective users must demonstrate compatibility with conservation guidelines and commit to responsible heritage stewardship.

Frequently Asked Questions

What is the permitted use and zoning classification for Hafary House?
Hafary House operates under commercial retail showroom use within the Jalan Besar Secondary Settlement conservation area. The zoning is commercial, permitting retail, office, and design-related business use. However, owing to heritage conservation status gazetted by the URA, any change of use must first secure conservation approval. Prohibited uses include heavy industrial, food courts, nightlife venues, and high-turnover retail chains that would compromise the heritage precinct character. The National Heritage Board’s Heritage Trail designation reinforces these use constraints. Prospective occupiers must obtain URA and NHB written consent before commencing alternative use. This ensures long-term stability of the building’s role within the conservation landscape but requires careful user vetting and compliance planning prior to lease or purchase.
Are foreign entities or foreign-backed investors permitted to own or lease Hafary House?
Foreign ownership or leasing of Hafary House is permitted under Singapore’s foreign investment framework, provided the transaction complies with the Foreign Acquisition Act (FAA) and obtains Government Land Office approval if applicable. Heritage buildings do not carry blanket foreign ownership prohibitions; however, the Monetary Authority of Singapore and IRAS may impose additional due diligence on foreign investment in conservation properties, particularly if the intent is speculative redevelopment. Typically, foreign investors acquiring heritage buildings for operational use (rather than site value) face fewer restrictions. Lease arrangements are generally open to foreign entities without formal approval, subject to standard landlord-tenant protections. Investors should obtain legal counsel regarding foreign acquisition clearance, as timelines and scrutiny vary by case. The building’s public heritage status may prompt governmental interest in acquisition patterns, particularly if proposed use conflicts with conservation intent.
What are the Seller’s Stamp Duty (SSD) and Additional Buyer’s Stamp Duty (ABSD) implications for Hafary House?
Seller’s Stamp Duty applies if the property is resold within three years of acquisition; rates scale from 4% (first year) to 2% (third year). Since Hafary Holdings acquired the property in July 2022, any sale before July 2025 incurs SSD. ABSD applies to non-citizen purchasers at 5% on top of standard stamp duty, and to entities (including foreign-incorporated companies) at 15% if acquiring for investment. Owner-occupiers (individuals who are Singapore citizens or permanent residents) purchasing as primary residence do not face ABSD, but commercial properties rarely qualify for this exemption. Investors must budget both SSD (if transacting within the three-year window) and ABSD (if non-resident or entity buyer), substantially increasing total acquisition cost. Legal counsel should model exact SSD and ABSD liability based on ownership structure and transaction timing, as these duties can swing deal economics significantly.
How does the building age and heritage status affect financing options and mortgage terms?
Heritage conservation buildings typically face stricter financing scrutiny from banks and institutional lenders. Hafary House, though structurally sound and award-winning in restoration, will command higher due diligence costs and potentially shorter loan tenures than modern properties. Most banks cap loan-to-value (LTV) at 60–70% for conservation buildings, versus 80–90% for contemporary office stock. Interest rates may carry a small premium (0.25–0.5% above benchmark) to reflect heritage compliance risk. The dual structure (heritage front + modern rear extension) actually improves bankability by demonstrating segregated, independently serviceable assets. Renovation reserve funds and building insurance are more stringent; MCST may mandate higher sinking funds due to periodic facade restoration costs. Valuation reports must be prepared by heritage-experienced assessors. Prospective purchasers should obtain mortgage pre-approval from heritage-experienced lenders (DBS, OCBC, UOB have relevant teams) early in transaction, as approval timelines extend 4–8 weeks longer than standard commercial mortgages.
What is the expected maintenance cost and MCST fee structure for this heritage building?
Heritage buildings incur substantially higher maintenance costs than standard commercial properties. Hafary House, given its age, facade complexity, and conservation obligations, likely carries MCST fees in the range of S$15–25 per square foot per annum, versus S$8–12 for modern office buildings. A 10,000 sq ft space could expect annual MCST of S$150,000–250,000. This covers lift maintenance, common area utilities, security, cleaning, insurance, and critically, reserve funds for facade restoration, roof replacement, and specialist conservation work. The building’s triple frontage and ornamental tilework necessitate periodic expert maintenance. Owners must budget additional capital expenditure every 7–10 years for facade re-pointing, tile re-grouting, and waterproofing. The MCST council typically mandates detailed five-year maintenance plans reviewed by heritage engineers. Single occupiers should request audited MCST financials and reserve fund statements before committing, as underfunded reserves can trigger special levies. Heritage buildings often see MCST escalations of 5–8% annually due to specialist labour costs.
What is the rental yield potential and typical tenant profile for this location?
Hafary House, positioned as a flagship design showroom in a premium heritage setting, commands premium showroom rents in the D12 market. Comparable showroom and design studio space in nearby Jalan Besar or Balestier commands S$4.50–6.50 per square foot per month, equating to approximately S$45,000–65,000 monthly for the full 10,000 sq ft footprint, or S$540,000–780,000 annually. Gross yield at current valuations (assuming S$71.28M acquisition price) equates to approximately 0.75–1.1% gross yield; net yield, after MCST and capex, typically ranges 0.3–0.6%. This is substantially below CBD office yields (1.8–2.5%) and industrial yields (2.0–3.5%), reflecting the heritage premium and niche showroom segment. Tenant quality matters significantly; design-centric, creditworthy occupiers (like Hafary) demonstrate longer hold duration and lower vacancy risk than transient retailers. The property suits patient capital investors prioritizing capital appreciation and heritage asset stability over immediate yield. Leasehold secondary-market evidence will emerge post-December 2024 as initial retail performance data accumulates.
What happens if the building is slated for en-bloc redevelopment or collective sale?
Heritage conservation buildings are effectively protected from en-bloc redevelopment. Jalan Besar Secondary Settlement conservation area status means the URA will not approve en-bloc applications that entail demolition or substantial alteration of the heritage facade. Any collective sale triggered by, for example, 80% ownership consensus would require explicit heritage exemption from the Minister for Culture, Community and Youth, a threshold almost never crossed. Hafary Holdings’ freehold title provides permanent operational tenure without en-bloc risk, unlike leasehold structures that may face forced sale at lease expiry. However, the conservation mandate also eliminates upside from site redevelopment; the property’s value trajectory is anchored to operational income and heritage asset appreciation, not land banking. Long-term owners must accept this trade-off: stability and conservation legacy versus development optionality. For investors seeking eventual exit flexibility, heritage conservation status is a constraint. For heritage-committed long-term operators, it is a protective feature ensuring asset durability and regulatory stability.
Is there any Goods and Services Tax (GST) or import duty on materials sold or imported through the showroom?
Hafary House, as a showroom and retail outlet, is fully subject to Singapore’s 9% Goods and Services Tax (GST). All materials displayed and sold (tiles, stone, bathroom fittings, flooring) carry GST applied at point of sale. Bulk or trade discounts do not eliminate GST, though GST-registered contractors and designers can claim input tax recovery on purchases. Imported materials incur customs duty (typically 0% for building materials under bilateral trade agreements) and GST upon customs clearance, with duties borne by importer or distributor. Hafary Group, as a distributor, manages import compliance and GST remittance; end-customers (contractors, designers, homeowners) are charged GST-inclusive prices. The property owner (currently Hafary Holdings) receives rental income on which they remit GST if registered; most showroom operators are GST-registered. No special GST exemptions apply to heritage buildings or showroom operations. Buyers should factor GST into all material specifications and procurement budgets; it is a non-recoverable cost for final consumers unless they are GST-registered businesses.
What are the typical lease tenures and renewal terms for showroom and design studio space in this building?
Showroom and commercial leases within heritage buildings typically span three to five years, reflecting operational uncertainty and regulatory compliance risk. Initial leases in the Lavender conservation precinct often run three years with two optional renewal periods of two years each, providing up to seven years of occupancy security with landlord consent. Rent escalation clauses commonly include annual increments of 2–3% or fixed percentage jumps at renewal. Given the building’s heritage status and anchor tenant positioning, landlords prioritize long-term stability and brand fit; premium tenants with strong capitalization and heritage commitment may negotiate five-year initial terms with landlord renovation contribution clauses. Lease agreements must include explicit heritage compliance obligations: tenant responsible for obtaining URA approval for any internal alterations, fixtures, or signage that alter exterior appearance. Break clauses are rare, as landlords require tenure certainty to justify heritage maintenance capex. Secondary-market evidence from other heritage commercial buildings suggests S$4.50–6.50 per sq ft per month as market rent, with lease downtime between tenants typically 2–4 months due to heritage approval lead times.
Are there any parking and goods-loading restrictions, and how do they impact operational efficiency?
Hafary House benefits from ten covered on-site parking lots, a strong advantage in dense urban Lavender. However, goods loading is regulated within the conservation precinct. The building has a single loading bay accessible via Foch Road; commercial vehicles over 5 tonnes (or double-axle configuration) are restricted during 7am–10am and 5pm–8pm peak hours per Jalan Besar traffic management guidelines. This constrains bulk material deliveries and requires advance scheduling with building management. Visitors and client vehicles can use on-site lots or street parking on Lavender Street (metered; 2-hour limit). The loading constraints are typical for heritage precincts prioritizing streetscape preservation; high-volume distributors should confirm delivery logistics with building management prior to lease signature. For showroom use (which generates customer foot traffic rather than heavy throughput), restrictions are minimal. Design studios and architecture practices rarely exceed 1–2 deliveries per week, well within permitted windows. Prospective occupiers involved in frequent material turnover or F&B should assess loading constraints as a potential operational bottleneck; design and retail showrooms are typically well-suited to existing facilities.
How liquid is the secondary market for commercial space in this heritage D12 location, and what is resale pricing volatility?
The D12 heritage commercial market is considered semi-liquid. Properties in the Jalan Besar conservation area (Hafary House’s precinct) attract niche buyers: design-focused operators, heritage investors, and long-term corporate users. Secondary market transactions are infrequent—typically 3–5 commercial leases annually across the entire conservation district—leading to price discovery challenges and extended marketing cycles (6–12 months). Sale prices in the broader D12 commercial market have demonstrated modest appreciation (1.5–2.5% annually) over the past five years, versus 2.5–4% for CBD office. Heritage status provides a valuation floor: unlikely to depreciate below comparable D12 commercial baselines, as conservation buildings attract patient capital and impact investors willing to forgo yield for asset stability. However, upside is capped; developers and financial buyers typically avoid heritage properties, limiting the exit buyer universe. A hypothetical resale of Hafary House would require 6–12 month marketing, likely to other design-centric operators or heritage-committed entities. Pricing stability is strong; volatility minimal. However, illiquidity and narrow buyer pool are critical considerations for investors requiring eventual exit optionality or portfolio liquidity. Long-term hold horizon is prudent for heritage commercial assets.
What business types and tenant profiles are best suited to succeed in Hafary House?
Hafary House is optimally suited for interior design and architecture studios, premium materials distributors (tiles, flooring, stone, bathroom fixtures), furniture showrooms, design consultation firms, and heritage-themed hospitality or retail concepts aligned with the Jalan Besar conservation aesthetic. Successful occupants typically require high-touch client engagement, specification-grade product curation, and professional workspace (not high-volume retail throughput). Occupiers generating substantial foot traffic, noise, or delivery volume (F&B, fast-fashion retail, logistics) are poorly matched to the heritage precinct and typically face approval friction from MCST and URA. Design-forward luxury brands (premium mattress, fine art, bespoke furnishings) have demonstrated success in adjacent Jalan Besar shophouses. Non-conforming uses (massage, entertainment, back-office outsourcing) will encounter explicit lease prohibition and conservation compliance denial. Hafary Group’s success with Hafary House validates the showroom model; secondary occupiers should similarly emphasize designer education, material quality, and brand heritage rather than volume and price competition. Occupiers must demonstrate operational quietness, aesthetic alignment with conservation district, and commitment to facade and common area stewardship. Heritage-aligned tenants generate longer hold durations, lower vacancy, and rental stability.
What planning or regulatory changes could impact Hafary House’s long-term viability or value?
Key regulatory risks centre on conservation intensification and transport planning. The URA’s Jalan Besar Masterplan may designate additional buildings for conservation, potentially reducing development upside for adjacent sites and stabilizing the heritage precinct (positive for Hafary House’s long-term environment). Conversely, unexpected relaxation of conservation rules (unlikely but possible with political shifts) could unlock redevelopment optionality elsewhere in the district, indirectly affecting property values. Transport planning—particularly any future MRT expansion or bus rapid transit routes—could enhance connectivity and showroom accessibility, supporting valuations. Conversely, if Lavender or Bendemeer MRT stations face upgrade disruption, temporary connectivity loss could dampen retail traffic. GST rate changes or business tax reforms could affect operational margin for retail occupiers, indirectly affecting lease demand. Heritage asset tax incentives (e.g., heritage conservation tax credits, which currently do not exist in Singapore) could materially enhance long-term investment returns if introduced. Political priority on conservation and cultural heritage appears stable, suggesting low near-term regulatory risk. However, investors should monitor URA district plan reviews (typically 5-yearly) and monitor announcements of conservation status changes affecting nearby precinct.
What is the outlook for the Lavender / Jalan Besar district over the next decade?
The Lavender and Jalan Besar precinct is experiencing steady regeneration as a heritage-conservation and design-focused micro-district. Government investment in heritage preservation, coupled with grassroots cultural initiatives (street festivals, heritage trails, artist residencies), is gradually shifting perception from purely industrial/residential to cultural and creative hub. City Square Mall’s proximity and upgrade projects will continue to attract lifestyle retail and F&B. The East-West MRT Line’s longstanding presence ensures stable commuter throughput, supporting showroom and office demand. Residential densification in nearby Toa Payoh and Serangoon is expected to drive mid-market commercial demand and renovation activity, likely boosting materials showroom traffic. However, the precinct will likely remain secondary to CBD and CBD-adjacent locations; premium CBD rents remain 2–3x Lavender. Long-term demand drivers are design education, creative industries growth, and heritage tourism (National Heritage Board promotions). Emerging risks include rising heritage maintenance costs (as buildings age further) and potential oversupply of co-working or flexible office space if conversion of heritage buildings accelerates without demand discipline. For Hafary House specifically, the Hafary Group’s committed capital investment and multi-location strategy suggests confidence in the district’s evolution. Investors should anticipate patient-capital returns (0.5–1.5% annual appreciation plus stable rental yields) rather than speculative gains, consistent with heritage asset characteristics.

This article is for informational and educational purposes only. It does not constitute investment, legal, tax, or professional advice. Property valuations, market commentary, and forward-looking statements are based on publicly available information and research as of August 2026 and are subject to change. Heritage conservation properties carry unique regulatory, compliance, and market risk. Prospective buyers, tenants, and investors should obtain independent legal, architectural, and financial counsel before committing capital, particularly regarding conservation constraints, MCST obligations, financing, and tax implications. The authors and publishers disclaim liability for errors, omissions, or reliance on this content. Heritage asset ownership and transaction timelines typically extend well beyond standard commercial timescales; due diligence is critical.

© 2026 SG Commercial Property Insights. All rights reserved.

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